Because life insurance is a vital purchase for the protection of your family, it’s important that you make the best decision for your policy. There are hundreds of different companies and policy types to choose from, how are you supposed to know which ones fit your needs?
We are here to help. One of the popular options for life insurance is AARP, but how does the company stack up against its competition?
The AARP life insurance plan might seem like the best choice.
Sadly, the senior citizen group misses the mark when it comes to cheap life insurance.
You have to be a member of AARP to purchase one of their policies, and group members will ALWAYS get better prices on products, right? Not so fast.
Table of Contents
History of AARP
If you want to look at the beginning of AARP, you have to go all the way back to 1958. It all started with Dr. Ethel Percy Andrus, who was a form principal.
AARP actually started as the National Retired Teachers Association, which Dr. Andrus had established in 1947 to help retired teachers get adequate health insurance.
The NRTA received tons and tons of requests for assistance with health insurance, even though those people weren’t retired teachers. This showed Dr. Andrus and others the need for insurance help for seniors.
They have changed a lot, but they say they have stuck to their three main principles:
- Promote independence, dignity, and purpose for older persons
- Enhance the quality of life for older persons
- Encourage older people, “to serve, not to be served
Now, this is how AARP got started, but what about today? If you haven’t heard of the company, then you haven’t watched TV or checked your mail in the past 50 years.
Just because they are well-known, doesn’t make them an automatic slamdunk.
Developed by New York Life Insurance Company one of the leading life insurance companies in the United States, the AARP plans to try and offer several benefits to protect policyholders and families. But the price isn’t worth the protection
As far as the quality of New York Life Insurance Company, they are a great carrier, but their prices are far from great. I remember helping one customer save 50% on their monthly premiums.
You have to do some groundwork to select the right one that meets your needs as well as compliments any other policies, trusts, or other benefits you are leaving behind to your loved ones.
Guidelines and policies are different among each carrier in the marketplace. And with hundreds of different companies your rates could be all over the board and your time would be spent pouring over the many options.
We have all the data you need for low cost term life insurance policies directly to you. Don’t waste your time talking on the phone with agents and answering the same questions repeatedly.
AARP Life Insurance Company Financial Strength
Due to its extremely large amount of reserves, New York Life Insurance Company is considered to be strong and financially stable. It also has a great reputation for paying out its policy holder’s claims.
For these reasons, the company has been given positive ratings from the insurer rating companies.
These ratings include the following:
- AA+ from Standard & Poor’s – Very Strong
- A++ from A.M. Best – Superior
- AAA from Fitch – Exceptionally Strong
- Aaa from Moody’s – Exceptional
New York Life Insurance Company is not an accredited member of the BBB (Better Business Bureau. However, the BBB has given the insurer a grade of B+. This is on an overall grade scale of A+ to F.
Throughout the past three years; there have been 93 total complaints that were closed with the Better Business Bureau. Of those, 33 were closed within the past year.
Here’s a quick rundown on the type of policies that AARP offers:
AARP Level Benefit Term
This plan lasts for a specific length and offers as much as $50,000 in protection in case you are lost. This policy lasts until you are 80 years old and the premiums begin cheap, but they slowly increase over time. There is no physical exam and you only have to answer three simple questions.
One of the biggest advantages of this plan is that it doesn’t require you to go through a medical exam to get life insurance coverage.
A lot of seniors seeking life insurance have poor health or have several pre-existing health conditions, such as diabetes, that can prevent them from getting coverage if they have to go through medical underwriting.
There are several pitfalls to these types of plans as well. The first is that any policy that doesn’t require a medical exam to be approved is going to be more expensive than one that does.
We suggest avoiding no-exam policies unless you know that you won’t be accepted for traditional coverage with an exam.
Extra Protection Term
Extra Protection Term is similar to the Level Term Policy, it gives more protection. You can buy up to $100,000 (double the previous policy).
This is an excellent option because most applicants need more life insurance coverage than the basic plan offers. It’s important that you get enough coverage to provide for your loved ones if anything tragic were to happen to you.
Permanent AARP Insurance
Their whole life allows you to get protection from $10,000 – $150,000 and is guaranteed for any applicant who is between 50 and 75.
An added bonus is you can add your spouse if they are between 45 and 74.
This is a great option for anyone who wants permanent life insurance protection. If you don’t want to ever have to worry about losing coverage or having to buy another policy, the permanent AARP plan is perfect for you. Although, these policies will cost more than a simple term life insurance policy.
Guaranteed
As with permanent life insurance, this offers coverage that will last a lifetime with up to $50,000 in coverage. Also, there is no exam and no premium increase. There is a mortality risk charge.
Once you’ve picked your plan, you can apply for the policy through the website or by mail.
One of the unique features of being an AARP member is the Young Start Program. This lets you get insurance coverage for your children or grandchildren as well.
Other Coverage Products Offered Through AARP Life Insurance Company
In addition to the term and permanent life insurance coverage that is offered via New York Life Insurance Company for AARP members, there are also over-insurance products that AARP members can take advantage of – typically at a nice discount in premium.
One of the other key products that AARP members can obtain via New York Life is annuities. These financial vehicles can offer a lifetime stream of retirement income – which can help to relieve the fear of outliving one’s savings.
Today, as people are living longer than ever before, outliving retirement income is a concern. But, with a retirement annuity through AARP’s plan, that is no longer a worry.
Fixed immediate annuities that offer lifetime income with a cash refund are available to AARP members who are between the ages of 50 and 89.
Lifetime income annuities with a ten-year guarantee are available to those AARP members who are between the ages of 50 and 85. Both of these annuity options allow the receipt of guaranteed monthly income payments for life.
These annuities may be purchased using funds from savings and CDs, or even with money from an IRA or a 401(k).
The (Few) Advantages of AARP
So far, everything seems pretty negative about AARP, and for the most part, it is. But there are a few good things about buying life insurance through the membership group.
One of those is how quick the application can be. They have a simplified application process.
Also, with tier plans, you aren’t going to pay drastically higher rates if you smoke. This is rare, but AARP doesn’t drastically jack up your premiums if you smoke.
One other unique benefit of AARP is they won’t check criminal records. Just about every other carrier is going to look for any severe criminal activity, with AARP they won’t look into your past.
Sure, all of these things are great, but are they worth it?
You can get a fast policy which won’t cost you for being a smoker, but it’s still going to be noticeably more expensive.
Even with the member “discount,” they still aren’t the cheapest choice.
We have many carriers that cater to people over 60 years old seeking affordable life insurance coverage. With over 60+ of the best life insurance companies at our disposal, a good majority of them will come in better priced than what you can get with AARP.
In fact, we’ve replaced several policies from AARP clients that were floored by how much less they could obtain a policy.
Talk with one of our professionals today to see if you can put more money back into your pocket.
Just like when you’re buying anything else, you probably shouldn’t go with the first option your price out. Going with the first insurance policy you find will cost you every month.
If you currently have an AARP policy, don’t worry, you aren’t locked into the policy. We can easily help you find a cheaper policy.
The more experience that a company has with insuring people over the age of 50, the better rates that you’re going to get. You shouldn’t have to pay ridiculous premiums every month to get life insurance coverage. Let us help you find the perfect policy to fit your needs.
If you have any questions about getting life insurance or about AARP life insurance policies, please contact us today. We would be happy to answer those questions and connect you with the perfect plan.
As a retired applicant, you might be wondering about your life insurance needs or how much you’ll spend on your coverage.
Don’t let any confusion or price keep you from getting life insurance. We would love to connect you with a cheap policy to protect your family. Not only can we answer your questions about AARP and any insurance coverage needs.
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AARP Life Review
Product Name: AARP Life
Product Description: AARP Life Insurance, offered through a partnership with New York Life, provides a range of life insurance products specifically tailored for AARP members, primarily those aged 50 and above. The products aim to offer simplified options for seniors seeking coverage without the need for exhaustive medical examinations. AARP’s offerings cater to those looking for both term and permanent life insurance solutions.
Summary of AARP Life
AARP, in collaboration with New York Life, has designed life insurance products that emphasize simplicity and accessibility for seniors. Their offerings range from term life insurance, which provides coverage for a set period, to more permanent solutions that can extend protection into one’s later years. The application process for many of these products does not require a medical exam, only health-related questions, making it easier for older individuals to obtain coverage. Additionally, as a part of AARP’s broader mission, these products come with the assurance of a trusted brand that understands the unique needs of the aging population.
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Cost and Fees
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Customer Service
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User Experience
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Product Offerings
Overall
Pros
- Simplified Application Process: Many of AARP’s life insurance products don’t require a medical exam, streamlining the application process.
- Tailored for Seniors: Products are specifically designed with the needs of those aged 50 and above in mind.
- Reputable Partnership: The collaboration with New York Life, a well-established and reputable insurance provider, offers added assurance to policyholders.
- Exclusive Membership Benefits: Being an AARP member can provide access to other benefits and resources beyond just insurance.
Cons
- Membership Requirement: Only AARP members can access these insurance products, which means an additional membership fee for those not already affiliated.
- Potential Cost: Some consumers find that AARP life insurance rates can be higher compared to other insurers, especially for certain age brackets or health profiles.
- Coverage Limits: Depending on the product, there might be limits on the amount of coverage one can purchase, especially without a medical exam.
